Mayawati slams Center over UPI fee, calls it ‘capitalist profiteering attitude’

Bahujan Samaj Party (BSP) President Mayawati. File | Photo credit: PTI

Bahujan Samaj Party chief Mayawati has termed the Centre’s move to impose a 0.4% levy on merchants’ Unified Payments Interface (UPI) transfers of more than ₹2,000 from October 15 as, prima facie, a “capitalist profiteering stance” that exacts tax from the people with both hands.

Also read | Government denies foreign push for UPI MDR, says fee will help India’s UPI apps

In a post on X in Hindi on Friday (September 18, 2026), Ms Mayawati said: “After initially vigorously pushing UPI digital transactions, the government’s new move now to levy charges on these transactions, prima facie, appears to be a capitalist profiteering approach involving extorting taxes from the people with both hands, which has naturally resulted in public outrage.”

She said the public is not willing to accept this system which imposes an additional financial burden on them as a “tax”. Regardless of the name of this scheme, which will come into effect on October 15, it will eventually burn a hole in the pockets of common people and increase their expenses, she said.

“It is well known that the vast majority of the country’s population is afflicted by extreme poverty, rampant inflation and the like, and their children are affected by illiteracy, unemployment, disorder and so on,” Mayawati said.

“Under such circumstances, it would be appropriate for government policies and action plans to prioritize welfare over commercial gain. If the government will not address public hardship and suffering, then who will?” the BSP chief said in the X post.

After ending nearly six years of free UPI payments, the government on Tuesday introduced a 0.4% charge on transfers above ₹2,000 made to merchants through the platform starting October 15. The government has expressly separated everyday person-to-person transactions and small payments from any fee.

“Customers will not have to pay any charges while making such payments through UPI,” the finance ministry said in a statement, adding, “MDR is a charge within the merchant payments ecosystem. It is not a charge for customers making UPI payments.” Individuals will continue to have “unlimited free usage, with no monthly quotas, volume caps or tiered limits on free UPI transactions,” it said.

The move drew sharp criticism from opposition parties.

Published – 18 Sep 2026 09:54 IST